anu (service) 07 March 2011

Simplification of DIN rules

General Circular No.5/2011

F.No.2/1/2011 CL.V

Government of India

Ministry of Corporate Affairs,

Shastri Bhawan,

5^th Floor, ‘A’ Wing,

Dr.Rajendra Prasad Road

New Delhi.

Dated : 04.03.2011

All Regional Directors,

All Registrars of Companies,

All Official Liquidators.

SUBJECT ; DIN PROCESS – SIMPLIFIED – REG.

Sir,

I am directed to inform that the Ministry’s has re-examined the process of allotment of Directors Identification Number (DIN) to be obtained u/s 266B of the Companies Act, 1956. The present process is cumbersome and time consuming. Representations have been received in the Ministry that the documents required to be submitted should be simple to prove the existence/residence of a person, who intend to become a director of a company.

The Ministry has constituted a Group to examine the business process re-engineering under MCA-21. In order to speed up and simplify the process to obtain a DIN, the below mentioned procedure have been recommended.

1. Application for DIN will be made on eForm ; No physical submission of documents shall be accepted and for this purpose Scanned documentsalong with verification by the applicant will be attached with the eForm. Only online fee payment will be allowed i.e. No challan payment

2. The application can also be submitted online by the applicant himself using his DSC.

3. DIN 1 eForm can be digitally signed by the professional who shall also confirm that he has verified the particulars of the Applicant given in the application.

4. Where the DIN 1 is verified by the professional, the DIN will be approved by the system immediately online.

5. In other cases the DIN cell will examine the application and same shall be disposed of within one or two days.

6. Companies (Directors Identification Number) Rules, 2006 are being amended on the above lines.

7. Penal action against the applicant and professional certifying the DIN application in case of false information / certification as per provisions of section 628 of the Act will be taken in addition to action for professional misconduct and revocation of DIN, allotted on false information

8. The above procedures is expected to enable allotment of DIN on the same day.

9. The above procedures applies to filing of DIN 4 intimating changes in particulars of Directors.

A notification to notify the aforesaid procedure is being issued. After issue of necessary notification, the applicant/professionals/DIN Cell are advised to follow the notified procedures for allotment of DIN.

Yours faithfully,

(Monika Gupta)

Assistant Director(Inspection)

Tele :23387263

Copy to: DIN Cell,MCA, PDIL Bhawan, Sector-1, Noida.

Reply Follow

1 Replies

(Guest)

Thank you for the above message. MCA may consider the following suggestions: (1) Atpresent, if any discrepancy arise in the DIN application, MCA will reject the DIN and the applicant need to file a fresh DIN. MCA may please reconsider this formalities as equivalent to PAN application. In PAN application, If any discrepancy arise, we may resubmit the additional documents instead of applying a fresh one. (2) Recently i applied DIN on behalf of one my client named Jayakumar. His driving license shows as S. Jayakumar and His Father's name shows as Sukumaran Nair. I entered First Name as Jayakumar and Last Name as Sukumaran Nair as per the proof. Since, Jayakumar is a single name, i had also submitted Affidavit. But MCA rejected it and advised me that i need to fill First Name as Jayakumar and last name as Sukumarannair instead of Sukumaran Nair. But the proof shows with a gap between sukumaran and nair. (3) DIN application is one of the starting point to yield revenue to our Govt. Hence, MCA may simplify this procedure too. Thank you......